Safeway Files IPO For Blackhawk Gift Card Unit

Safeway (SWY) filed an initial public offering to spin off its Blackhawk Network gift card unit. The grocery store operator said the IPO should raise about $200 million but the number of shares and price haven't been announced. The shares will be sold by existing shareholders.

Blackhawk, established in 2001, sells prepaid gift cards at grocery stores and other stores for Amazon (AMZN), Apple's (AAPL) iTunes, Barnes & Noble (BKS) and Starbucks (SBUX) as well as telephone and prepaid debit cards. The company plans to be listed on the Nasdaq under the ticker symbol HAWK.

Safeway still plans to keep a large stake in Blackhawk after the IPO. It currently owns 96% of the card company.

For 2012, Blackhawk reported adjusted net income of $50.3 million and revenue of $949 million.

The Retail-Super/Mini Markets group is ranked No. 117 out of the 197 industry groups IBD tracks, rising from 160 eight weeks ago.

Kroger leads the group with a Composite Rating of 94. IBD's Composite Rating measures stocks in five areas, with extra weight on earnings and stock price strength. Safeway has a 70 rating.

Safeway (SWY) filed an initial public offering to spin off its Blackhawk Network gift card unit. The grocery store operator said the IPO should raise about $200 million but the number of shares and price haven't been announced. The shares will be sold by existing shareholders.

Blackhawk, established in 2001, sells prepaid gift cards at grocery stores and other stores for Amazon (AMZN), Apple's (AAPL) iTunes, Barnes & Noble (BKS) and Starbucks (SBUX) as well as telephone and prepaid debit cards. The company plans to be listed on the Nasdaq under the ticker symbol HAWK.

Safeway still plans to keep a large stake in Blackhawk after the IPO. It currently owns 96% of the card company.

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